Are You Sick of Bad News Yet?

 

We don't know about you, but we're absolutely sick to our gills here hearing about all the bad news regarding the economy, and more directly, the real estate industry.

 

Zogby AOL released a poll recently showing that over 50% of Americans believe that home ownership is still attainable for everyone. Other interesting facts in their survey showed:

• 31% of participants feel their home is worth more than it was a year ago
• 56% do not think their home will be worth less in five years
• 69% of Americans seeing real estate as a viable investment
• If forced to sell their home today, 50% would buy another home rather than rent
• Almost 50% of Americans would seriously consider purchasing a home through a foreclosure listing
• 67% of Americans surveyed turn to the Internet first when looking for a home

 

These numbers are consistent with other recent findings. However, the disconnect is the trust in the American economy seems to still lag. So what comes first?

 

Other interesting findings: What are the Key Factors when searching for a home?

• Communities with low crime
• High-quality schools
• Recreational facilities
• Easy commute to work

 

One interesting take is that there is a significant percentage of respondents that indicated that they would pay a premium for a home if they could cut their drive time by half.

 

Where do you rate with these questions? We'd love to hear your opinion. Just click the comment link below and sound off. Your email address will never be published on this site to protect your identity and your email from spamming.

 

 

 

Filing Bankruptcy to Stop Foreclosure?

 

Some homeowners facing foreclosure are considering filing bankruptcy. Even though this might be an option for some people, there are a lot of other things you should try before filing bankruptcy to stop foreclosure.

 

The first thing you need to do is contact your mortgage lender. The sooner you do this the better. It's best to contact your lender as soon as you realize you might miss a payment. not after you've already missed one or two. Then your mortgage lender will be more likely to negotiate other options with you so you will not have to consider filing for bankruptcy.

 

Some of the possibilities you can try to negotiate with your lender would be reinstatement, forbearance, or a repayment plan, all of which are options if your money problems are temporary. If your money problems are not temporary, before you can try to negotiate with your lender to get a mortgage modification or a partial claim.

 

If none of these solutions will work for you and you won't be able to keep your home, before filing bankruptcy to stop foreclosure you should try to sell your home, or see if the mortgage company will allow assumption, a pre-foreclosure sale or short sale, or the deed-in-lieu of foreclosure.

 

All of these options require you to work with your current mortgage lender. If your mortgage lender is not willing to negotiate with you, you can try calling a HUD approved foreclosure counseling agency to get some assistance going over your options. These are usually free.

 

If at all possible you should avoid filing for bankruptcy as this will impact your credit rating and make things difficult for you in the future. Filing bankruptcy to prevent foreclosure is also not an option for everyone, and not all types of bankruptcies actually stop foreclosure.

 

A Chapter 13 Bankruptcy can stop foreclosure, so if you are thinking of filing bankruptcy, you should check to see if you quality for this type of bankruptcy, as not everyone does.

 

Be advised that filing bankruptcy to stop foreclosure won't mean you no longer have to make any payments on your house. A part of Chapter 13 Bankruptcy is a payment plan to pay off at least part of the money you owe to creditors such as your mortgage lender.

 

Remember, don't wait until you've already missed a payment or two before talking to your mortgage lender. Do it early!

 

 

 

Finding Money to Save

 

Trying to figure out ways to offset all the things you have to pay more for than you used to, but your paycheck is just not keeping pace?

 

Saving an extra couple of hundred dollars each month is easier than you think if you follow some of the ideas from Money Talks editor Stacy Johnson in this short (1:43) video…

 

What do you think? Any other ideas you've come up with to save a few dollars each month? Share them with us… we'd love to hear from you. Just click the comment link below and sound off. Your email, although needed to post a comment, will never be published here to protect your privacy.

 

 

 

Winter Heating Bills Could Soar

 

Home heating bills are expected to soar this winter and Americans, already struggling with high gas and food prices, are bracing for more financial hardship.

 

On average, consumers are expected to pay $1,182 to heat their homes this year, up 20% from last year, according to recent estimates from the Energy Information Administration (EIA).

 

While consumers may have some leeway in how they manage their heating bills and can take steps to make their homes more energy efficient, most experts say there is little we can do to escape higher energy prices.

 

More than half of America's households use natural gas for heating purposes. The Northeast has the largest concentration of home heating oil users in the country. And the prospect of a 31% increase in the price of heating oil has the region on edge.

 

Many Northeasterners try to get a jump on heating oil prices by filling their tanks during the late summer and fall months when prices are typically lower. But this year's run-up in crude prices has altered the usual seasonal pattern, and filling up now COULD actually cost more than waiting if crude oil prices continue to tumble as they have recently. Pre-buying is not the slam dunk it used to be.

 

One way that may be more managable is by going the "Level Payment Plan" route. This type of plan allows consumers to spread heating costs out over a longer period of time at a fixed monthly rate, which is based on the customer's billing history. At the end of the year, however, if the consumer has used more or less than what is covered by the monthly payments, the bill is adjusted accordingly.

 

 

 

Foreclosures: We Have to Warn You!

 

Seems everyone these days thinks they can score a house on the cheap by buying a foreclosed property. There are good deals to be had, but we have to warn you, the process is complicated and risky. Foreclosure properties are much like fire, and you know the old saying, "play with fire, and you could get burned."

 

There are three different stages of foreclosure, each of which presents different opportunities for buyers. The first step is to figure out which one makes the most sense for you, if indeed any of them do.

 

Pre-foreclosure

A home goes into pre-foreclosure when a borrower has fallen behind on his payments, but the house has yet to be auctioned off.

 

Buyers can find pre-foreclosures by sifting through the delinquency notices that lenders file with county courthouses when a borrower misses a payment.

 

Some owners are open to doing what's called a short sale, which is when a buyer pays less for a house than the mortgage that is owed on it. Lenders have to agree to a short sale, and will then forgive the rest of the debt.

 

Often, banks are reluctant to approve of such deals since it requires them to take a loss. This process can take months and a lot of badgering before a deal goes through, and not every buyer is up for that kind of hassle.

 

Sheriffs' sales

Another stage of foreclosure is when homes in default are auctioned off on the county courthouse steps. These homes can be real bargains, but the process is a crap shoot.

 

Bidders can't inspect the property, so there's no telling how much work it needs. And there is also no telling what kind of liens there are against the home, due to unpaid taxes and so forth, which can also jack up the cost of these homes. Finally, buyers need to come with cash, ready to put 10%-20% down on the spot, and able to pony up the rest in a matter of days. This method of buying a foreclosure is not for the beginner or first time homebuyer!

 

Post-foreclosure

After a lender takes back a house, the property goes on the market as what's called an REO (real estate owned) property. These are treated like ordinary sales, listed with a broker. Typically, bargains are not as sharp.

 

If you want to dive into the foreclosure market, this is the only method we recommend you even think about. The process is fairly clean, the title is clear and the property is delivered vacant, even though the prices may not be as low as a courthouse steps auctioned property may be.

 

Talk to us if you feel brave and want to explore the foreclosure market. We'll let you know if there are any such properties in the market and in your price range of affordability.